Eclipse Raises $1.3 Billion Fund to Invest in ‘Physical AI’ Startups

Palo Alto-based venture capital firm Eclipse has raised a $1.3 billion fund to support startups working at the intersection of artificial intelligence and the physical world.

The fund is divided into two parts. It includes a $591 million early-stage incubation pool and a separate allocation for growth-stage investments.

Over the past few years, Eclipse has steadily increased its focus on sectors that operate beyond digital platforms. Its portfolio already includes companies such as Arc, Redwood Materials, Bedrock Robotics, Wayve, and Mind Robotics.

Defining the ‘physical AI’ opportunity

According to partner Jiten Behl, the firm sees “physical AI” as the next phase of technological development.

He noted that earlier innovation cycles were driven by the internet, mobile computing, and social platforms. However, the current shift involves applying intelligence to real-world systems, where software directly influences physical outcomes.

As a result, industries such as transportation, energy, and infrastructure are becoming key areas for AI deployment.

Investment strategy across sectors

Eclipse plans to invest across a wide range of sectors. These include transportation, energy, infrastructure, compute, and defense.

Importantly, the firm is not only funding companies but also building connections between them. The goal is to create an ecosystem where startups can collaborate early and scale together.

This approach, according to the firm, may help companies validate their products faster and access broader market demand.

Building companies alongside investing

In addition to backing external startups, Eclipse intends to incubate new ventures through this fund.

While specific details remain limited, Behl confirmed that the firm has already started working on select ideas. These efforts are expected to focus on enterprise applications that can operate across multiple industries.

Moreover, the firm sees data as a key advantage. By connecting companies across sectors, Eclipse aims to enable shared data usage, which could improve AI models and create long-term competitive advantages.

Capital and timing align for growth

The rise of “physical AI” is supported by multiple factors. These include advancements in technology, availability of skilled talent, increasing demand, and supportive policy environments.

Therefore, with fresh capital in place, Eclipse is positioning itself to participate actively in this shift. The firm aims to support startups throughout their lifecycle, from early development to large-scale deployment.